Starknet’s STRK20 privacy layer lets users shield and unshield any ERC-20 on Starknet, send tokens with no onchain link between sender and receiver, and use private balances in DeFi against existing Ekubo and AVNU liquidity. The architecture uses a canonical privacy pool with encrypted notes and nullifiers, plus sequencer-verified ZK proofs designed to settle in 1-3 seconds for under $0.10. Compliance is built into the model through per-user viewing keys held by an independent auditor, so specific activity can be disclosed under lawful process without opening the whole pool.

TLDR by @Benthic

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